Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» Stocks don’t go up and stay up because of stories, tips, or people’s opinions
by asokasamarakone Yesterday at 8:29 pm

» #PM Crisis#
by Ryan Hudson Yesterday at 2:18 pm

» FINANCIAL INSTITUTIONS IMPAIRMENT COST
by Yahapalanaya Sat Dec 08, 2018 11:10 pm

» @RANFERDI, YAhapalan, In which list are you? Puravesi Lithro List, or Kiriella List or other list
by Ryan Hudson Sat Dec 08, 2018 6:50 pm

» MONTH PEACE & HAPPINESS
by Ryan Hudson Sat Dec 08, 2018 6:40 pm

» ඔරියන්ට් ෆ්යිනැන්ස් -විකිනීම ස්තිරයි - අද ද අයිලන්ඩ් පුවත් පත බලන්න 2020 වෙනකම් පුලුවන් නම් තියා ගන්න - අදහා ගන්න බැරි ආදායමක් ලබන්න
by ruwan326 Fri Dec 07, 2018 11:11 pm

» JINS NO DEAL YET - BFN IS ON AND POSITIVE -CHECK THE COMPNAY ANNOUNCEMENT CAREFULLY - NO NOTHING ABOUT BFN
by kalu351 Fri Dec 07, 2018 10:03 pm

» Will ALHP be eliminated from the CSE?
by wisdom79 Fri Dec 07, 2018 8:41 pm

» Is TKYO.N0000 a Sleeping Giant
by aklt Fri Dec 07, 2018 7:52 pm

» FINALY – BFN – TAKE OVER NEWS IS OUT OFFICIALY -DONT SELL BELOW 20 TRY TO BUY AT CURRENT 15-17 LEVELS
by Equity Suda Fri Dec 07, 2018 12:57 pm

» Market will RISE expecting a MR Led new government
by samaritan Fri Dec 07, 2018 8:43 am

» ##FUN TOONS###
by ruwan326 Fri Dec 07, 2018 8:21 am

» CROSSINGS TODAY
by ruwan326 Fri Dec 07, 2018 8:04 am

» FOREIGN NEWS
by ruwan326 Fri Dec 07, 2018 8:03 am

» Daily Foreign Transactions
by ruwan326 Fri Dec 07, 2018 8:02 am

» PLAYERS PICK OF THE DAY
by ruwan326 Fri Dec 07, 2018 7:39 am

» JINS – LIFE FOR SALE – ALONG WITH BFN - BUY BUY BUY
by kalu351 Thu Dec 06, 2018 2:49 pm

» JINS – DON’T BUY BEYOND 30 – DEAL IS AT 30 BFN - BUY BELOW 22 – DEAL IS AT 25
by kalu351 Thu Dec 06, 2018 2:47 pm

» EQUVITY BROKERS AND BARTLEETS COLLECTING BFN -DONT SELL
by kalu351 Thu Dec 06, 2018 2:45 pm

» BFN DONT SELL EVEN AYT 17 COLLECT NOW - PRICE IS 25
by ruwan326 Thu Dec 06, 2018 8:13 am

» JINS – LIFE FOR SALE – ALONG WITH BFN
by ruwan326 Thu Dec 06, 2018 7:54 am

» how about mgt
by sanjulanka Thu Dec 06, 2018 6:52 am

» PRICES BFN – NOW 15.30 / JINS 26.60 /LOFC 3.6 / UBC 11 BUY BUY BUY
by sanjulanka Wed Dec 05, 2018 11:54 pm

» JINS JINS JINS - UP UP UP NOW 23.50 - NEXT IS BFN BFN
by sanjulanka Wed Dec 05, 2018 11:52 pm

» DIVIDEND ANNOUNCEMENTS- OCT/NOV
by thankrishan Wed Dec 05, 2018 10:46 am

» Financial Reports Q-3 2018
by ruwan326 Wed Dec 05, 2018 9:14 am

» CSE THIS WEEK
by samaritan Wed Dec 05, 2018 9:12 am

» Business Sentiment – Index Shores Up Despite Turmoil
by ruwan326 Wed Dec 05, 2018 7:57 am

» PRICES BFN – NOW 15.30 / JINS 26.60 /LOFC 3.6 / UBC 11 BUY BUY BUY
by nirowat Tue Dec 04, 2018 7:55 pm

» INSURANCE companies artifically high
by nosf766 Tue Dec 04, 2018 2:29 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Ocean Of Dangers

Ocean Of Dangers

Go down  Message [Page 1 of 1]

1 Ocean Of Dangers on Sat Aug 25, 2018 6:21 am

Chanuque

avatar
Manager - Equity Analytics
Manager - Equity Analytics
? Has the retail investors lost the trust in regulatory and audit efforts on Public Listed Companies .. We do not know at this point how many killer sharks out there to get us, the retail investors ..
Seemingly, there is no life-guards to protect those who want to have a dip in the ocean of dangers where the greed rules ..
Symptoms like repetitious security under writing as rights, having related-party transaction as cash outflow with conflict of interest, and so on. Sagas like TWOD and PCH recall us very well how the GO-GO orchestration kept until the last moment ..
Deregulate mechanism definitely does not help investors as the management knows how to cover-up the truth of going concern ..

2 Re: Ocean Of Dangers on Sat Aug 25, 2018 8:20 am

ruwan326

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@Chanuque wrote:? Has the retail investors lost the trust in regulatory and audit efforts on Public Listed Companies .. We do not know at this point how many killer sharks out there to get us, the retail investors ..
Seemingly, there is no life-guards to protect those who want to have a dip in the ocean of dangers where the greed rules ..
Symptoms like repetitious security under writing as rights, having related-party transaction as cash outflow with conflict of interest, and so on. Sagas like TWOD and PCH recall us very well how the GO-GO orchestration kept until the last moment ..
Deregulate mechanism definitely does not help investors as the management knows how to cover-up the truth of going concern ..
If the market is GREEN as CSE investors we should be happy, but we can see few members really wish and pray for market RED Mad Mad Mad Mad

And the worse thing is leaving all the methods and analysis on investing and blindly following Sumanadasa type prediction tellers Wink 
waiting till 2020 for a different government  Very Happy it does not matter which party run the country all I have to say is they do not give a SHIT about retailers-  http://www.dailymirror.lk/20787/manipulation-in-the-sri-lankan-stock-market


 

3 Does not matter which party same shit on Sat Aug 25, 2018 8:33 am

ruwan326

avatar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics


Share market scandal erupts in Sri Lanka- Saturday, 15 September 2012


World Socialist Web Site: A scandal over the manipulation of shares on the Colombo Stock Exchange has erupted in recent weeks, after former Sri Lankan Securities Exchange Commission (SEC) Chairman Thilak Karunaratne accused Government ministers of acting in league with speculators.

Karunaratne was pressured by President Mahinda Rajapaksa to quit his position, just nine months after his appointment. The apparent reason for his ouster was that the SEC had commenced investigations into 17 companies accused of abusing the share market.



After his resignation, Karunaratne told the media of “daylight robbery” by a “stock market mafia” closely connected to Government leaders, including Rajapaksa.

Karunaratne is a politician as well as a businessman. He was a founding leader of the Sinhala chauvinist Jathika Hela Urumaya (JHU), then joined the right-wing United National Party (UNP). Just before the presidential election in January 2010, he switched to Rajapaksa’s Sri Lanka Freedom Party (SLFP).

The SEC is the “regulating authority” appointed by the president to oversee the Colombo stock market. Rajapaksa has used his powers to install chairpersons loyal to the Government. Karunaratne’s predecessor Indrani Sugathadasa, who resigned in similar circumstances, is the wife of the President’s Secretary, Lalith Weeratunga.

The latest scandal has provided a glimpse into the operations of a parasitic layer of financial speculators who have been nurtured by the Rajapaksa Government since the end of the country’s longstanding civil war. After the defeat of the Liberation Tigers of Tamil Eelam (LTTE) in May 2009, the Colombo all share price index soared — from 1,631 points in 2008 to 7,800 points in February 2011.

Rajapaksa pointed to the rocketing share prices as proof of his Government’s economic success. The financial press hailed “one of the best performing share markets in the world,” but the “success,” amid the global financial crisis, was built on rampant speculation.

In early 2011, the bubble burst and the index is currently hovering around 5,000 points. Foreign investors have been withdrawing funds and Colombo is rated as one of the world’s “worst performing” markets.

Karunaratne admitted that speculation had been a major factor in the share price rises. “The major contribution came from people who used unfair means in pumping up the market, which made it reach extreme high levels,” he told the media.

The former SEC Chairman has not named the 17 companies that he placed under investigation. But he hinted at their identities by citing cases where prices had dramatically risen between the end of 2009 and end of 2010. Over that year, the share prices of Dankotuwa Porcelain, Blue Diamonds, Asian Alliance Insurance, Lanka Hospitals and HVA Foods stock increased by 226, 270, 177, 204 and 394 per cent respectively.

A Sunday Times editorial last weekend, entitled ‘Jackals and mafia of crooks,’ commented: “It is common tattle that many of the 17 ‘suspects’ are closely linked to the ruling elite. This linkage extends to the level of financing the political campaigns of the rulers, and even more, acting for them as front men.”

In a scheme known as “pumping and dumping,” major dealers encouraged investors to put money into particular shares, promising huge returns. When the share price reached a certain level, the dealers sold out, making staggering profits, and prices fell sharply. Small share holders, who had in many cases invested their savings and pensions, were hit with heavy losses.

The Central Bank encouraged this speculative frenzy by releasing money from the Employees Provident Fund (EPF), the country’s biggest pension fund, to purchase shares, including in ailing companies such as Galadari Hotels, Laugfs Gas, Piramal Glass Ceylon, Ceylon Grain Elevators and Browns. The release of EPF cash for private sector investment was a longstanding demand of the International Monetary Fund (IMF).

The results have been disastrous. For example, the EPF purchased 23.7 million shares in the loss-making Galadari Hotels at a price of 32.50 rupees a share in 2010 from Nawaloka Hospitals. By July 2012, the share price had plummeted to 11 rupees, resulting in a loss of 500 million rupees for the EPF. Overall, the EPF had lost about 6 billion rupees by the middle of this year.

The newly-appointed SEC Chairman, Nalaka Godahewa, is well connected to the Government as well. He was given the job despite heading the Colombo Lands and Development (CLD), which is also under a cloud for share manipulation.

The CLD had been a prominent Colombo real estate developer but was restructured into a joint venture with the Urban Development Authority (UDA). In 2010, the Government put the UDA, a civilian body, under the Defence Ministry, which is headed by Gotabaya Rajapakse, the President’s brother.

The UDA is central to the Government plans to develop Colombo as a major “commercial hub,” primarily through the eviction of some 70,000 shanty dwellers. The security forces have already forcibly removed hundreds of families.

One of those recently identified by the media as a member of the “stock market mafia” also has government connections. Dilith Jayaweera, head of Divasa Equity, recently admitted meeting with Gotabaya Rajapaksa to discuss share market affairs. Gotabaya Rajapaksa arranged for Jayaweera, who was known for demanding a free hand for share dealers, to meet with SEC Chairman Karunaratne.

The eruption of the share market scandal points to deep dissatisfaction among layers of the corporate elite with the Rajapaksa Government and its business cronies. The Ceylon Chamber of Commerce has expressed concern over Karunaratne’s resignation, warning that it would send the wrong signal to foreign investors.

These divisions in ruling circles have opened up amid the worsening global economic breakdown, which is impacting heavily on the Sri Lankan economy through declining exports and an emerging balance of payments crisis.

The scandal has revealed a parasitic layer of speculators and share price manipulators operating in collaboration with the government, which will inevitably attempt to pass the burden of the losses onto the working people.

http://www.ft.lk/article/109712/Share-market-scandal-erupts-in-Sri-Lanka

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum